Rio Tinto reports weakest earnings in five years due to decline in commodity prices

Mining giant Rio Tinto reported its weakest first-half profit since 2020. In the first six months of 2025, the company’s underlying profit fell 16% year-on-year – to $4.81 billion, according to Reuters.

This is slightly less than analysts had expected (Visible Alpha’s forecast was $5.05 billion). The main reason was a 15% drop in iron ore prices.

Amid weaker financial results, Rio Tinto announced its lowest interim dividend since 2018 – $1.48 per share, compared to $1.77 a year earlier. At the same time, the company remained optimistic about the future. CEO Jacob Stausholm, who is stepping down in August, said Rio Tinto is in good shape and has growth prospects in copper and lithium.

Among the challenges is rising costs in the Pilbara region of Western Australia. The cost of iron ore production there rose to $24.3 per tonne, compared to $23.2 last year. This is due to lower supply volumes and the effects of a cyclone. The company maintains its cost forecast for the year in the range of $23-24.5 per tonne.

Iron ore prices have fallen due to a decline in steel production in China and an increase in global supply. At the same time, Rio Tinto hopes for a gradual recovery of the market – Morgan Stanley forecasts a recovery in prices to $100 per tonne by the end of the year. Demand for copper and lithium is also growing, particularly due to the development of data centres and battery systems.

As GMK Center reported earlier, in the second quarter of 2025, Rio Tinto achieved its highest level of iron ore production in the Pilbara region of Australia since 2018. The total volume was 83.7 million tons, which is 20% more than in the previous quarter and 5% more year-on-year.